Since this is an EXTRAordinary event a more balanced set of risks can be fashioned if:
SOME SKIN IN THE GAME if ANY commitment of US taxpayer funds
As previously suggested, in "RECYCLING OLD Wall St compensation" Wall St and the other financial services institutions managements, boards and employees should contribute some personal funds to a set of solutions. AND take a second place interest BEHIND the return OF and the return ON US taxpayer money.
The taxpayer rightly or wrongly feels that:
- They get to keep their jobs, get a paycheck (at taxpayer expense!), in cleaning up their own problems - things could be a lot worse; just ask an auto worker, flight attendant or pilot.
- The US treasury proposal fails to pin money responsibility on those most in the position to have known better;
- Same proposal will, as previous extraordinary rescues (at taxpayer expense), fail to deliver a cure as promised;
- Liquidity band aids the fracture - it can act as a temporary solution only;
- Liquidity DOES not, as stated on http://www.fiduciaryexpert.com/ in JULY 2007, address the REAL immediate problem - that is credit default, due to asset values continued decline;
- The REAL cure is to allow all markets to proceed on their own - let private market players balance it all out - no matter how painful.
- The taxpayer understands that markets need to self - correct; not all goes up (or down) in a linear fashion.
ONE FINAL Q-U-E-S-T-I-O-N FOR THE TV Business media
Today is Monday, September 29, 2008
TV Business media (the usual cast) is in such a questioning frenzy TODAY - stirring up debate, looking for answers, one even chest thumping "WE own this story" really?
Where were they in the 16 quarters spanning 2004, 2005, 2006 and 2007?
Watching the PARADE of analysts-estimate-beating, RECORD Wall St EPS announcements get what? A Cheer! When scrutiny was the more appropriate news angle, not to mention the primary job descriptor and RESPONSIBILITY of a journalist.